NXT Capital, LLC has closed NXT Capital CLO 2013-1, a $358 million CLO. The financing, NXT’s second CLO in less than a year, is secured almost exclusively by middle-market senior secured loans originated by NXT and has a three-year reinvestment period.

NXT sold securities rated from AAA through BB and retained all the equity interests. Pricing on the AAA-rated securities of LIBOR+1.50% was a post-crisis low for an exclusively middle-market CLO. Wells Fargo Securities, LLC served as the lead manager, structuring agent and bookrunner for the transaction and BMO Capital Markets GKST Inc. served as co-lead manager.

“Robust investor response to the CLO by repeat and new investors is further validation of NXT’s proprietary direct loan origination capability and our disciplined risk management practices,” said NXT’s Chairman and CEO Robert Radway.

“The CLO’s success also illustrates the growing recognition among institutional investors of the diversification benefits that middle-market loan assets provide to their portfolios, as well as the consistent performance and attractive risk adjusted returns of middle-market loans throughout market cycles.”

“NXT expects to be a regular CLO issuer as we continue to expand and diversify our funding platform,” noted Neil Rudd, chief financial officer. “This provides NXT with stable and competitively priced financing, enabling the business to compete effectively in the marketplace and provide enhanced returns to our investors.”

NXT Capital provides structured financing solutions to middle-market and emerging growth companies and real estate investors through its Corporate Finance, Real Estate Finance, Equipment Finance and Venture Finance groups.